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Bitcoin And Coinbase In News

Bitcoin has become popular in the world of online poker games as a leading digital currency.

There is a change that is coming by in this digital currency that rules the virtual world. The US Government has issued a dictum that Bitcoin Exchanges should seek out customer identities when such transactions take place. The name of the company has not been disclosed, but it is one of the leading names in the digital asset exchange segment. The US Justice Department has asked for the company to disclose identities of some of the major customers that they have.

As per a Forbes report, Coinbase is the company who has been asked to disclose people who transfer digital currency and have done so between the end of 2013 and 2015.

The notice has been served to them from DoJ through the IRS. The method that the justice department is using is the John Doe method of summons that can help uncover possible cases of tax violations that might have taken place. Indeed, the area of conversion from real to digital currency is a grey area that often leads to undisclosed earnings, which do not come directly under the foray of tax collections. Coinbase has been targeted as they offer a bitcoin exchange to the largest extent in the US. The customer transaction details can help the justice department to group people who engage in such activities more often or with greater volumes than others. There are certain provisions in IRS, which might be violated by individuals who might be dealing with bitcoin exchanges and profiting from the same. Coinbase however, is not ready to comply with the filings with the court. The company representatives have stated that Coinbase usually goes along with general legal requirements, but the recent request from the justice department needs to be scrutinized and the company might want to exercise its right to protest in handing over such information.